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NO.  95 


11 


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Author: 


Axtell,  Silas  Blake 


Title: 


The  economic  effect  of 
the  Seamen's  act 

Place: 

[New  York] 

Date: 

[1 920] 


Q5-&'Z'2S?^-U 


MASTER   NEGATIVE   * 


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I 


THE  ECONOMIC  EFFECT  OF 
THE  SEAMEN'S  ACT 


For  the  consideration  of  students  of  economics,  trade,  civil 
and  political  organisations,  I  submit  the  following. 

SILAS  BLAKE  AXTELL. 


^    / 


J) 


*# 


History  of  U.  S.  Maritime  Legislation i 

Opposition  to  Act  by  Foreigners 2 

Enforcement  by  Courts 2 

Wages  Equalized 3 

Increase  in  Native  Americans  at  Sea 3 

Naturalization 3 

Foreign  Interests  in  Our  Merchants  Association 3 

^egal  Phases  of  Act  Pro  and  Con 4 

Protective  Measure  Like  Tariff 4 

Economic  Law  4 

Alternatives  in  Alien  Labor  or  Subsidy 5 

U.  S.  Reports  Show  Seamen's  Act  Equalized  Wages 5 

Subsidy 5 

Absentee  Voting  by  Seamen g 

Please  Fill  Out  Referendum g 

Explanatory 1^ 


\ 


History  of 
U.  S.  Maritime 
[legislation. 


Wages  on  American  and  foreign  vessels  since  the 
enforcement  of  the  Seamen's  Act,  1916,  have  been  ap- 
proximately equal.     Should  it  be  repealed? 

In  1890  Congress  passed  a  statute  giving  our  seamen  the  right    \\ 
to  one-third  of  the  wages  due  them  at  all  loading  and  discharg-      ♦ 
ing  ports.     Many   foreign  seamen  were  attracted  to  our   ships. 
Our  shipping  flourished.     Prior  to  1812  Great  Britain  sought  to 
repress  some  of  them  back  into  service. 

From  1890  to  1920  American  ships  carried  90  i)er  cent.  Amer- 
ican trade.  In  1919  Congress  amended  this  statute  as  a  part  of 
the  Act  of  March  4,  1915.  It  was  known  as  the  La  Follette 
Act  or  Seamen's  Act.  The  amendment  provided  that  seamen  on 
American  and  foreign  vessels  should  have  the  right  to  half  wages 
earned  on  demand  in  American  loading  and  discharging  ports, 
and,  in  event  of  refusal,  that  the  seaman  should  be  entitled  to  all 
his  earned  wages.  As  a  part  of  the  Act,  the  President  was 
directed  to  and  did  abrogate  all  reciprocal  treaty  provisions  re- 
lating to  arrest  of  deserting  seamen  from  foreign  vessels  in  ports 
of  the  United  States  and  from  American  vessels  in  foreign 
ports,  and  the  Courts  of  the  United  States  were  thrown  open  to 
seamen  for  enforcement.  As  the  seamen  say.  Uncle  Sam  agreed 
to  quit  "slave  catching"  for  himself  and  for  everybody  else. 

After  the  Civil  War,  due  to  various  causes,  our  merchant 
tonnage  in  foreign  trade  fell  away  so  that  in  1914  we  carried  less 
than  10  per  cent,  of  our  trade  and  had  about  1,000,000  tons  under 
the  American  flag,  or  one-fortieth  of  the  world's  tonnage.  Eng- 
land had  about  23,000,000  and  carried  most  of  our  goods. 

Wages  in  foreign  countries  had  always  been  lower  than  in 
America.  Likewise,  wages  were  lower  on  foreign  vessels  when 
crews  were  hired  abroad.  In  1884,  by  a  provision  of  the  Dingley 
Act,  Congress  sought  to  encourage  American  shipping  by  permit- 
ting American  vessels  to  use  labor  engaged  in  European  ports 
at  the  lower  wages  prevailing  there,  but  the  measure  did  not  have 
the  result  hoped  for,  and  our  merchant  marine  did  not  grow. 

With  a  high  protective  policy  in  force  from  1884  to  1914, 
our  export  foreign  trade  was  of  no  great  importance  and  Eng- 
lish vessels  for  the  most  part  carried  our  goods.    Many  of  these 


ships  were  owned  by  American  companies,  but  as  the  wages 
ashore  in  America  were  double  the  wages  of  Europe  and  wages 
of  seamen  in  American  ports  correspondingly  high,  this  differ- 
ential was  considered  an  insuperable  difficulty  to  American  oper- 
ation.   At  any  rate,  we  had  no  shipping  or  shipbuilding  industry. 

The  war  changed  that.  The  cry  of  "ships,  more  ships"  re- 
sulted in  a  prodigious  effort.  We  now  have  10,000,000  tons 
under  the  American  flag — for  the  most  part  oil  burners  and  sub- 
stantial vessels. 

In  January,  1916,  the  Seamen's  Act  went  into  effect  on  for- 
eign vessels;  with  it  Section  4,  as  the  amended  Act  of  1890  re- 
lating to  half  wages  was  called.  The  abolition  of  arrest  for 
desertion  gave  the  seaman  political  freedom,  but  Section  4  gave 
him  economic  freedom.  Seamen  on  American  vessels  seldom 
used  the  half  wage  demand,  but  the  seamen  on  the  comparatively 
low-paid  foreign  vessels  readily  took  advantage  of  it  and  de- 
manded half  wages,  and  unless  the  operator  raised  his  pay,  he 
quit  the  ship,  thus  creating  a  vacancy  that  must  be  filled  by  a 
substitute.  Foreign  vessels  found  it  impossible  to  get  substitutes 
in  American  ports  at  less  than  the  prevailing  American  rate,  so 
A/-I  in  a  short  time  most  foreign  vessels  were  paying  the  American 
rate  of  wages  and  improving  living  conditions  on  their  ships  so 
as  to  retain  their  seamen  while  in  American  ports.  Seamen  in 
foreign  ports  held  oif  for  this  preferred  trade  to  such  an  extent 
that  soon  wages  between  Europe,  Africa  and  Australia  had 
reached  and  stayed  at  one  level — the  American  level. 

Before  the  Act  was  passed,  it  was  opposed  by  foreign  ship- 
ping interests.  When  the  Act  went  into  effect,  the  President  was 
asked  by  their  representatives  to  suspend  the  Act  for  the  dura- 
tion of  the  war,  but  he  declined. 

Foreign  shipowners  and  the  British  Government  itself  then 
sought  to  defeat  the  Act  through  our  Federal  Courts.  While 
^ome  detrimental  limitations  were  placed  on  it,  either  because 
of  actual  confusion  or  other  cause  when  this  opposition  appeared 
before  the  Courts,  still  the  statute  as  to  application  and  effect 
was  upheld  by  each  U.  S.  District  Court  that  passed  on  it,  and 
by  two  of  our  U.  S.  Circuit  Courts  of  Appeal — Fifth  and  Second, 
New  Orleans  and  New  York.  As  a  result,  wages  of  foreign 
vessels  to-day  equal  American  wages. 


Opposition 
to  Act  by 
foreigners. 


Enforcement 
by  Courts. 


DAMAGED  PAGE(S) 


,♦ 


Wages 
equalized. 


Increase  in 
native 
jAmericans 
lat  sea. 


Faturalization. 


foreign 
Interests 
In  our 

Terchants 
-»ciation. 


On  December  9,  1919,  these  cases  were  argued  before  the 
Supreme  Court  of  the  United  States.  The  British  Embassy  ap- 
peared as  amicus  curiae.  The  Attorney  General  of  the  United 
States  appeared  to  present  the  interests  of  the  American  people. 
The  seamen  also  appeared,  through  counsel,  of  whom  I  had  the 

honor  to  be  one. 

The  Seamen's  Act,  aside  from  equalizing  wages  on  foreign 
competitors,  has  largely  equalized  other  operating  costs  to  the    ^, 
foreigner.     They  have  had  to  afford  better  living  conditions  on      \ 
foreign  vessels  to  prevent  desertion. 

Another  remarkable  change  that  can  be  attributed  to  the 
Seamen's  Act,  and  the  "consequently  improved  conditions  pre- 
vailing at  sea  on  our  ships,  is  the  tremendous  increase  in  the 
number  of  American  citizens  in  our  merchant  crews.  In  1914, 
on  our  miserable  1,000,000  tons  of  ships,  5  per  cent,  only  of  the 
crews  were  Americans.  To-day,  with  ten  times  as  great  a  ton- 
nage, eleven  times  as  many  of  the  crew  are  citizens;  in  other 
words,  55  per  cent,  of  the  total,  exclusive  of  officers  (all  of  whom 
must  be  citizens  to  hold  their  licenses). 

A  pronounced  drift  of  desirable  alien  seamen  to  American 
citizenship  is  indicated  by  the  very  great  number  who  have  taken    -^^ 
out  their  intention  papers  lately. 

The  controversy  now  to  be  decided  by  our  Supreme  Court 
has  found  expression  and  still  finds  expression  in  propaganda. 
On  January  24,  1916,  somebody  caused  a  referendum  on  the 
Seamen's  Act  and  particularly  those  features  affecting  foreign 
ships  to  be  sent  out  by  the  United  States  Chamber  of  Commerce 
at  Washington,  D.  C.  It  was  sent  to  all  similar  local  trade  bodies 
in  the  United  States.  It  resulted  in  an  overwhelming  demand 
for  the  repeal  of  those  features  that  were  to  prove  so  beneficial 
to  American  shippers  and  correspondingly  detrimental  to  foreign 
ships.  Editors  and  writers  generally  assumed  without  mental 
digestion  that  the  Act  was  vicious  and  inimical  to  our  merchantv 
marine.  The  grossest  misstatements  and  exaggerations  went 
unchallenged  by  disinterested  parties  except  so  far  as  I  and  a 

few  others  could  do  it. 

I  personally  took  the  matter  up  with  the  Merchants  Associa- 
tion of  New  York,  from  whom  I  inferred  the  United  States 
Chamber  of  Commerce  at  Washington  gained  its  inspiration.     I 


found  at  the  head  of  the  Merchant  Marine  Committee  of  that 
body  a  man  who,  though  he  may  be  now  a  citizen  of  the  United 
States,  has  been  identified  with  shipping  under  a  foreign  flag  for 
years,  particularly  the  British  flag.  Amongst  the  notable  op- 
ponents of  the  measure  was  Robert  Dollar  (originally  a  Scotch- 
man), of  the  Pacific  coast,  five  of  whose  six  small  vessels  were 
under  a  foreign  flag  and  manned  by  coolie  crews  when  such 
crews  were  obtainable. 

The  layman  may  be  interested  in  the  legal  questions  involved. 
They  are  briefly:    (1)  Did  Congress  intend  to  affect  foreign  ves- 
sels in  such  a  way  as  to  equalize  wages?     The  answer,  if  any 
consideration  is  given  to  the  proceedings  in  Congress,  and  com- 
mon   sense   is   to   play   any   part   in   our   deliberation,   must   be, 
"Yes,  Congress  did  intend  to  equalize  wages."     (2)  Did  Congress 
exceed  its  powers?    The  foreigner  says,  "I  had  a  contract  made 
in  my  country  which  was  valid  there;  by  failing  to  enforce  it  you 
deprive  me  of  my  property  without  due  process  of  law,  and  that 
violates   your   own   Constitution."     The   people   of   the   United 
States  say,  "But  we  make  these  regulations  for  Amej-ican  ships 
and  seamen,  and  as  a  condition  of  entry  to  our  ports  in  order 
"  that  our  vessels  shall  not  be  put  at  a  disadvantage  in  trade.     IVe 
make  it  apply  to  you  also.    We  have  prescribed  that  if  you  send 
your  vessels  here  they  shall  comply  with  the  terms  of  this  law 
also;  by  coming  in  you  have  agreed  to  obey  the  law."     In  the 
vernacular  of  everyday  life,  we  say,  "When  in  Rome,  do  as  the 

Romans  do." 

Frankly,  the  measure  is  similar  in  method  and  effect  to  the 
Protective  Tariff  Law,  enforced  on  imported  goods ;  is  similar  to 
the  Immigration  laws  for  the  protection  of  the  health  and  morals 
of  our  people ;  is  similar  to  the  Contract  Labor  Law,  intended  to 
protect  American  labor  from  cheap  contract  foreign  labor,  and 
the  laws  prohibiting  foreigners  from  engaging  in  coastwise  trade 
«f  the  United  States.  The  Act  was  intended  to  equalize  wage 
operating  costs  on  all  vessels  in  foreign  trade.  It  has  had  that 
effect,  so  far  as  it  has  been  enforced. 

Practically  it  means  that  we  have  loosed  the  pent-up  force 
of  economic  law.  We  have  removed  the  artificial  bonds,  and 
wages  have  adjusted  themselves  according  to  the  supply  of  labor 
and  the  demand  for  it.  If  we  are  to  have  an  American  merchant 
marine  with  American  labor,  we  must  pay  wages  and  afford 
living  conditions  which  the  Act  does  afford. 


Legal  phases 

of  Act 

pro  and  con. 


*i 


Protective 

measure 
like  tariff. 


Economic  law. 


^--.— — - 


Alternatives  in 
alien  labor 
or  subsidy. 


U.  S.  reports 
show  Seamen's 
Act  equalized 
I  wages. 


ISubsidy. 


The  alternative,  of  course,  is  to  have  American  ships  manned 
by  Oriental  crews  or  the  cheapest  alien  labor  obtainable.    But  such 
a  merchant  marine  is  not  desirable.     In  case  of  war,  it  is  of  no 
value.    We  might  as  well  have  an  army  of  hired  mercenaries  in- 
stead of  citizen  soldiery.    To  get  and  maintain  a  merchant  marine 
of  Americans,  we  must  create  on  the  sea  such  conditions  of  em- 
ployment as  to  wages,  living  quarters,  food,  and  last  but  not  least, 
libertv  of  movement,  as  will  attract  Americans  from  shore  employ-    ^ 
ments.    This  is  fundamental.    The  Seamen's  Act  does  this,  and      ^ 
stands  as  a  national  policy  to  enforce  such  conditions  against  for- 
eign vessels  competing  with  us,  so  that  they  too  will  be  placed  un- 
der similar  expense  of  operation.  Of  course,  back  of  this  law  may 
be  the   far-seeing  wisdom  of  the  humanitarian,  who  wishes  to 
raise  by  these  methods  the  living  conditions  of  all  seamen  to  the 
American  standard.     Practically,  as  Americans,  we  believe  we 
are  still  in  the  age  of  nationalism  and  must  look  at  the  proposition 
only  from  our  national  point  of  view.    The  records  of  the  United 
States  Shipping  Board  (see  report,  December  31,  1918,  and  De- 
cember, 1919),  which  can  be  obtained  by  addressing  the  United 
States  Shipping  Board  at  Washington  (also  reports  filed  in  Oc-      ^ 
tober,  1919,  with  the  Department  of  Labor),  as  to  the  practical  o> 
effect  of  the  Seamen's  Act,  first  in  increasing  wages  on  foreign 
vessels,  and  second  in  increasing  the  number  of  Americans  em- 
ployed on  American  vessels,  show  that  foreign  wages  are  to-day 
practically  equal  to  American  wages,  and  these  reports  indicate 
the  Seamen's  Act  to  be  responsible  for  the  change. 

If  the  Supreme  Court  of  the  United  States  does  happen  to 
decide  this  case  in  favor  of  foreign  interests— and  it  is  hardly 
conceivable  that  thev  will— either  the  Act  will  have  to  be  amended 
or  some  other  drastic  legislation  be  enacted  which  will  have  the 
same  effect,  or  else  the  American  people  will  have  to  tax  them- 
selves to  maintain  ships  manned  by  American  seamen  in  com- 
petition with  foreign  ships.  V 
It  is  of  course  unthinkable  that  we  should  let  our  merchant 
marine  disappear  by  transfer  to  foreign  flag  or  that  we  should 
adopt  that  other  method,  to  wit,  employment  of  cheap  alien  labor 
with  American  officers  and  flag  alone  to  indicate  the  nationality 
of  the  ship.     The  shipowners  have  urged  a  subsidy.     They  say, 
"We  want  American  seamen,  but  let  the  American  people  pay 
the  difference  in  wages."    This  is  not  sound  economy.     Wages 
of  the  ocean  should  be  equal  everywhere.     The  law  of  the  sea 


OFFICES    OF 

SILAS      BLAKE      AXTELL 

PROCTOR  IN  ADMIRALTY 
ONE    BROADWAY 

TKL.    BOWLING   GREEN    8266-8267 


ARTHUR  LAVENBURG 
LUCIAN  V.  AXTELL.  jR. 


New  York 


January  31,  1920. 


NIM  MILLER.  ESQ.  , 

Fiimald  Hall, 

Hew  York  City 


Sin 

I  am  sending  enclosed  circular  on  Seamen's  Act  to  you  on 
my  own  initiative  and  personal  expense.   You  may  assume  that 
my  motives  are  selfish  but  if  you  will  consider  the  matter,  I 
believe  you  will  conclude  that  they  are  also  patriotic.   When 
self-interest  and  common  good  project  one  in  the  same  line, 
we  may  hope  with  the  best  results.  ^ 

Do  not,  therefore,  please  throw  this  in  the  waste  basket 
as  part  of  the  mass  of  advertisements  and  propaganda  which  is 
forced  upon  one  these  days.  For  reasons,  which  will  be. dis- 
closed on  reading  the  pamphlet,  there  is  no  one  who  will  give 
much  money  and  time  to  this  propaganda.  That  it  is  necessary 
and  vital  to  our  country,  cannot,  I  think  be  denied. 

I  beg  therefore,  that  you  read  this  over  and  take  action 
as  indicated  and  that  the  referendum  when  voted  upon  be  forward- 
ed to  me  promptly  where  it  will  be  reserved  for  future  use. 


Yours  very  truly. 


SBA/CK 


r/t 


G 


should  be  the  same  in  every  port,  and  on  every  ocean.  The 
economic  law  should  likewise  be  the  same  and  be  given  the  same 
freedom.  Go  a  step  further,  and  you  will  agree  with  me  that 
the  men  of  the  sea  should  be  given  the  same  freedom  on  every 
sea;  the  same  freedom  that  is  given  to  the  men  in  shore  em- 
ployments. My  brief  personal  experience  at  sea  as  an  ordinary 
seaman  in  1911)  confirms  this  view. 

Of  course,  if  the  wage  level  in  Euroi:)e  rises  and  is  main- 
tained at  the  American  level,  the  practical  reason  for  the  enforce- 
ment of  this  Section  4  of  the  Seamen's  Act  will  not  be  necessary, 
from  the  economic  viewpoint  of  the  shipowner.  Present  indica- 
tions are  that  wages  in  Europe  are  receding  faster  than  they  will 
in  the  United  States. 

We  hear  much  about  democracy  and  industry  to-day.  Much 
can  be  infused  into  our  merchant  marine.  Desirable  aliens 
should  be  induced  to  become  citizens,  and  the  opportunity  to 
vote  for  Federal  officers  at  least  should  be  promptly  given  to 
seamen.  The  Seamen's  Unions  have  at  some  expense  and  effort 
taken  steps  to  induce  alien  seamen  employed  on  American  vessels 
to  take  out  their  first  papers. 
^  Due  to  the  nature  of  their  calling,  seamen  scarcely  ever  vote 
because  they  can't  be  ashore  to  register  and  cast  the  ballot. 
Denmark,  Sweden,  Norway  and  Holland  have  extended  absentee 
voting  privileges  to  seamen  for  many  years.  England  adopted 
and  passed  such  a  law  in  1918. 

An  amendment  of  the  Constitution  of  the  United  States  should 
be  made  permitting  absentee  voting  by  seamen  in  Federal  elec- 
tions. The  effort  of  the  people  of  the  United  States  to-day,  I 
suggest,  should  be  not  to  restrict  the  ballot,  but  to  carry  it  to 
those  of  our  people  who  by  the  nature  of  their  calling  do  not 
use  it.  Democracy  is  not  functioning  for  those  who  work  and 
pav  taxes  and  have  no  representative  voice  in  the  Government 
#hich  makes  the  laws  under  which  they  live.  This  applies  to 
harvest  hands  and  others  of  our  floating  population,  shipbuilders, 
etc.  Members  of  the  I.  W.  W.  and  Bolsheviks  and  those  im- 
pregnated with  Bolshevik  notions  are  found  in  these  classes  of 

labor. 

The  purpose  of  this  communication  is  to  inspire  thought  and 
expression  of  it  in  our  seats  of  learning.  Boards  of  Trade  and 
other  similar  civic  and  political  bodies.  Will  those  to  whom  this 
communication  is  sent,  whether  it  be  a  class  of  economics  in  a 


Absentee 
voting  by 
seamen. 


Please  fill  out 
referendum. 


i 


Explanatory. 


college,  a  Board  of  Trade  or  other  civic  body,  please  make  the 
topic  a  subject  of  discussion?  Will  the  Professor  of  Economics 
or  Secretary  of  the  Board  of  Trade-whichever  the  case  may 
be-please  submit  the  following  questions  to  persons  who  have 
pven  the  matter  thought?  Indicate  the  vote  on  the  ballot  fill 
m  the  blank  form  annexed  hereto  and  return  the  same  to  me  in 
the  stamped  and  addressed  envelope. 

I  am  simply  an  American.     Circumstances  have  so  shaped 
themselves  that  I  have  come  into  a  knowledge  of  these  matters  f 
which  is  definite.     I  happen  to  be  actuated  by  public  motives   < 
My  own  interest  and  that  of  my  country  is  identical.    This  pam-  '^ 
phlet  IS  printed  and  mailed  at  my  own  expense  and  on  my  own 
responsibility.     Although    I    have   appeared    for   the    Seamen's 
Unions  in  their  fights  before  the  Supreme  Court  of  the  United 
States  to  enforce  the  Seamen's  Act  in  many  cases,  as  well  as  in 
other  courts,  I  am  not  controlled  by  them  or  by  anybody  else 
I  have  no  more  benefit  to  derive  from  the  result  of  the  enforce- 
ment of  this  Seamen's  Act,  or  any  action  that  you  may  take  on 
this  referendum,  than  that  which  any  man  gets  who  does  what 
the  best  impulses  of  his  heart  prompt  him  to  do.     Your  frank 
and  decisive  answer  is  therefore  asked. 


Very  sincerely  yours, 

SILAS  B.  AXTELL, 

Member  of  the  N.  Y.  State  Bar, 
No.  9  State  Street,  New  York  City. 


^J\\    6^4'!*^ 


^e^.2. 


fVx7 


Axtell 
Economic  effect  of  Seaman 


's  act 


MOV  1 71994 


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